IH Q1 English 2024

Insurance House P.J.S.C.

Reports and condensed interim financial statements (Un-audited)

For the three months period ended 31 March 2024

Abu Dhabi - United Arab Emirates

Ref:UN/AUH-B-337/May24

ReportonReviewofCondensedInterimFinancialStatements

To TheShareholders InsuranceHouseP.J.S.C AbuDhabi,UnitedArabEmirates

Introduction

WehavereviewedtheaccompanyingcondensedinterimfinancialstatementsofInsuranceHouseP.J.S.C.(the “Company”),whichcomprisethecondensedinterimstatementoffinancialpositionasat31March2024,andthe relatedcondensedinterimstatementofprofitorloss,thecondensedinterimstatementofcomprehensiveincome, thecondensedinterimstatementofchangesinequityandthecondensedinterimstatementofcashflowsforthe threemonthsperiodthenendedandotherrelatedexplanatorynotes.Managementisresponsibleforthe preparationandfairpresentationofthesecondensedinterimfinancialstatementsinaccordancewithInternational AccountingStandard34(“IAS34”)“InterimFinancialReporting”.Ourresponsibilityistoexpressaconclusionon thecondensedinterimfinancialstatementsbasedonourreview.

ScopeofReview

WeconductedourreviewinaccordancewithInternationalStandardonReviewEngagements2410,Reviewof InterimFinancialInformationPerformedbytheIndependentAuditoroftheEntity.Areviewofinterimfinancial informationconsistsofmakinginquiries,primarilyofpersonsresponsibleforfinancialandaccountingmatters,and applyinganalyticalandotherreviewprocedures.Areviewissubstantiallylessinscopethananauditconductedin accordancewithInternationalStandardsonAuditingandconsequentlydoesnotenableustoobtainassurance thatwewouldbecomeawareofallsignificantmattersthatmightbeidentifiedinanaudit.Accordingly,wedonot expressanauditopinion.

EmphasisofMatters

1.AsstatedinNote1.1ofthesecondensedinterimfinancialstatements,theCompanyhasaccumulatedlosses amountingtoAED126,353,664asat31March2024,(31December2023:AED119,136,157)whichresulted intheerosionofequityinexcessof50%.Thishasledtonon-compliancebytheCompanywiththesolvency ratioasrequiredbyfinancialregulationsforinsurancecompaniesissuedbyCentralBankoftheUAE.

2.WedrawattentiontoNote1.2tothesecondensedinterimfinancialstatementswhichindicatesthatthe CompanyhasincurredlossofAED6,908,140forthethreemonthsperiodended31March2024(yearended 31December2023:AED41,974,615)andhasaccumulatedlossesaggregatingAED126,353,664asat31 March2024(31December2023:AED119,136,157).Theseeventsorconditions,alongwithothermattersas setforthinNote1.2,indicatethatamaterialuncertaintyexiststhatmaycastsignificantdoubtontheCompany's abilitytocontinueasagoingconcern.

Ouropinionisnotmodifiedinrespectofthesematters.

For,CroweMak

UmeshNarayanappa Partner Registrationnumber:1234 AbuDhabi,UnitedArabEmirates 14May2024

Condensed interim financial statements

Condensed interim statement of profit or loss and other comprehensive income for the period ended 31 March 2024

The notes from 1 to 24 form an integral part of these condensed interim financial statements.

Condensed interim financial statements

Condensed interim statement of profit or loss and other comprehensive income for the period ended 31 March 2024 (continued)

Three months period ended 31 March 2024

Three months period ended 31 March 2023 AED AED (Un-audited) (Un-audited) (Restated)

Loss for the period (6,908,140) (8,738,703)

Other comprehensive income/(loss)

Itemsthatwillnotbe reclassifiedsubsequentlyto profitorloss:

Gain on sale from investments at fair value through other comprehensive income - equity securities 10,773 -

Net unrealized gain/(loss) from investments at fair value through other comprehensive income –equity securities 8,867 (930)

Items that maybe reclassified subsequentlytoprofitorloss

Net unrealized loss from investments at fair value through other comprehensive income – debt securities - 12,513

Total comprehensive loss for the period (6,888,500) (8,727,120)

The notes from 1 to 24 form an integral part of these condensed interim financial statements.

Insurance House P.J.S.C.

Condensed interim financial statements

Condensed interim statement of changes in equity for the period ended 31 March 2024

financial statements

Condensed interim statement of cashflow for the period ended 31 March 2024

Notes

OPERATINGACTIVITIES

Threemonths periodended 31March2024 (Un-audited)

Threemonths periodended 31March2023 (Un-audited) (Restated)

INVESTINGACTIVITIES

Purchaseofpropertyandequipment

FINANCINGACTIVITIES

Insurance House P.J.S.C.

Condensed interim financial statements

Notes to the condensed interim financial statements for the period ended 31

March 2024

1 Legalstatusandactivities

Insurance House P.J.S.C. (the “Company”) is a public joint- stock company registered and incorporated in the Emirate of Abu Dhabi, United Arab Emirates and is engaged in providing all classes of non-life insurance solutions in accordance with Federal Decree Law No. (48) of 2023 Regulating Insurance Activities (previously Federal Law No. 6 of 2007 as amended). The Company was established on 8 December 2010. The Company performs its activities through its head office in Abu Dhabi and branches located in Al Samha, Dubai – Sheikh Zayed Road, Sharjah, Mahawi and Motor World.

On 2 October 2023, the Federal Decree Law No. (48) of 2023 Regulating Insurance Activities was issued and came into effect on 30 November 2023 which repealed the UAE Federal Law No. 6 of 2007. The Companies must within a period not exceeding (6) six months from the date of the enforcement of its provisions from 30 November 2023 ("the transitional period") comply with the provisions of the UAE Federal Decree Law No. (48) of 2023 Regulating Insurance Activities. The Company is in process of performing the necessary amendments to its Articles of Association in order to align with the new provisions and the requirements as approved by the General Assembly of shareholders and subject to regulatory approvals.

The Company's ordinary shares are listed on the Abu Dhabi Securities Exchange. The registered office of the Company is P.O. Box: 129921, Abu Dhabi, United Arab Emirates. The range of products and services offered by the Company include but is not limited to accidents and civil responsibility insurance, land, marine and air transportation dangers insurance, health insurance, onshore and offshore oil and gas fields and facilities services.

1.1 Equity

As of 31 March 2024, the Company’s accumulated losses are AED 126,353,664 (December 31, 2023: AED 119,136,157) which resulted in erosion of equity in excess of 50% and had affected the required solvency ratio as prescribed by the Central Bank of the UAE. The shareholders have approved the option of Company’s continuation and the commencement of the implementation plan in the General Assembly Meeting dated 07 July 2023. The management has submitted the revised recovery plan on 22 November 2023 to the Central Bank of UAE and is in process of sharing clarification on this plan.

1.2 Goingconcern

The Company’s future plan indicates that the Company will be profitable and will generate sufficient cash flow. The Company's directors are, therefore, confident that the Company will be able to meet its liabilities as and when they fall due and to carry on its business without a significant curtailment of operations. Accordingly, these condensed interim financial statements have been prepared on a going concern basis. The Companyhasprepareda recovery plan whichis alsosubmitted toCentralBankofUAE which consists of the following key reasons for the issues and planned steps to resolve them.

Key reasons for the accumulated loss leading to solvency deficit:

 The Company has not utilized technically sound pricing methodologies for the Medical and Motor lines.

 Financial reporting and control issues:

- Misstatements in the preparation of the financial statements for the years ended 2020,2021 and 2022, specifically in relation to recording of medical reinsurance premiums and medical reinsurance claims.

- Delays in the realization of losses led to delays in pricing correction and increased accumulated losses. If these misstatements had not occurred, it was likely that corrective action, specifically the repricing of medical business, would have been taken in 2020 by the Management and the Board.

 The selling of unprofitable Motor business due to increased competition in the UAE Motor market.

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

1 Legalstatusandactivities(continued)

1.3 Managementplantoaddressgoingconcern

The Company has planned the following key actions to address the solvency deficit by increasing the total Basic Own Funds i.e. Basic Own Funds and Subordinated Liabilities. The actions are as follows.

Increase in basic own funds:

 Asset allocation:Reallocationof assetsfrom equitytofixedincomesecuritiestoreducetheinadmissible assets falling under equity (AED 11 million improvements in solvency).

 Reissuing treasury shares: Raise capital through reissuance of treasury shares (AED 4.6 million).

 Raise Tier 1 capital: A capital injection of AED 20 million through Tier 1 Capital will also increase the assets for solvency purposes.

Increase in subordinated liabilities:

 Shareholder Guarantee: Increase subordinated liabilitiesby means of a shareholder guarantee (AED 75 million).

The Company is also planning strategy and other changes in the underwriting, operations and internal control to improve the overall profitability of the business.

2 Generalinformation

2.1 Statementofcompliance

The condensed interim financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, “Interim Financial Reporting” as issued by the International Accounting Standard Board (IASB), and in compliance with the applicable requirements of the UAE Federal Decree Law No. 32 of 2021 ("Companies Law”), relating to commercial companies and UAE Federal Decree Law No. (48) of 2023 Regulating Insurance Activities (previously Federal Law no. 6 of 2007, as amended) concerning Financial Regulations for Insurance Companies issued by the Central Bank of the UAE ("CBUAE”) and regulation of its operations.

2.2 Basisofpreparation

These condensed interim financial statements are prepared for the three months period ended 31 March 2024 and are presented in United Arab Emirate Dirham (AED), which is the functional currency of the Company.

The condensed interim financial statements have been prepared on historical cost basis, except for the measurement at fair value of certain financial instruments value and the provision for employees' end of service indemnity which is calculated in line with UAE labour laws.

These condensed interim financial statements have been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ and do not include all of the information required in annual financial statements in accordance with International Financial Reporting Standards and should be read in conjunction with the financial statements for the year ended 31 December 2023. In addition, the results for the three months period ended 31 March 2024 are not necessarily an indication of the results that may be expected for the financial year ending 31 December 2024.

2.3 Accountingconvention

These condensed interim financial statements have been prepared using the measurement basis specified by IFRS for each type of asset, liability, income and expense. The measurement bases are described in more detail in the accounting policies.

statements

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

2.4 Standards,interpretationsandamendmentstoexistingstandards

NewandamendedIFRSStandardsthatareeffectiveforthecurrentperiod

A number of new standards are effective for annual periods beginning after 1 January 2024 and earlier application is permitted; however, the Company has not early adopted any of the forthcoming new or amended standards inpreparingthese condensed interim financial statements.Managementanticipates that these standards will not have any significant impact on these financial statements.

The following relevant standards, interpretations and amendments to existing standards were issued by the IASB:

New Standards or amendments Effective date

Amendments to IAS 1 Presentation of Financial Statements - Classification of Liabilities as Current or Non-current No effective date set Amendments to IAS 1 Presentation of Financial Statements - Non-current Liabilities with Covenants 1 January 2024

Amendments to IFRS 16 Amendments to clarify how a seller-lessee subsequently measures sale and leaseback transactions 1 January 2024

Amendments to IFRS 10 and IAS 28- Sale or Construction of assets between an Investor and its associate or joint venture 1 January 2024

Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures Supplier Finance Arrangements 1 January 2024

IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information

IFRS S2 Climate-related Disclosures

Amendments to IAS 21 Lack of Exchangeability

3 Materialaccountingpolicyinformation

1 January 2024

1 January 2024

1 January 2024

These condensed interim financial statements have been prepared on a consistent basis with the accounting policies and estimatesadopted in the Company’s most recent annualfinancial statements for the year ended 31 December 2023, except for application of new standards effective as of 1 January 2024 and several amendments and interpretations applied for the first time in 2024 as stated in Note 2.4.

3.1 Propertyandequipment

Property and equipment are recorded at cost less accumulated depreciation and any impairment losses. Depreciation is charged on a straight-line basis over the estimated useful lives of the property and equipment.

Assets in the course of construction for production, supply or administrative purposes are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Company’s accounting policy. Such assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

3.1 Propertyandequipment(continued)

The rates of depreciation used are based on the following estimated useful lives of the assets:

Material residual value estimates and estimates of useful life are updated as required, but at least annually.

Gains or losses arising on the disposal ofproperty andequipment are determined as the difference between the disposal proceeds and the net carrying amount of the assets and are recognised in condensed interim statement of profit or loss.

3.2 Financialinstruments

a) Recognitionandderecognition

FinancialassetsandfinancialliabilitiesarerecognisedwhentheCompanybecomesapartytothecontractual provisions of the financial instrument and are measured initially at fair value plus, for an item not at fair valuethroughprofitorloss,transactionscoststhataredirectlyattributabletoitsacquisitionorissue.Regular way purchases and sales of financial assets are recognised on the date on which the Company commits to purchase or sell the asset i.e. the trade date.

b) Classificationandsubsequentmeasurementoffinancialassets

For the purposes of subsequent measurement, the Company classifies its financial assets into the following categories:

i)

Financial assets at amortised cost

Financial assets at amortised cost are those financial assets for which:

- the Company’s business model is to hold them in order to collect contractual cash flows; and - thecontractualtermsgive riseonspecificdatestocashflowsthataresolelypaymentsofprincipaland interest on the principal amount outstanding.

After initial recognition these are measured at amortised cost using the effective interest method, less provision for impairment. Discounting is omitted where the effect of discounting is immaterial.

These are included in current assets, except for maturities greater than 12 months after the end of the reporting period which are classified as non-current assets.

Financial assets at amortised cost comprise statutory deposits, cash and cash equivalents, due from related parties and most other receivables.

ii) Financial assets at fair value through other comprehensive income (‘FVTOCI’)

Investments in equity securities are classified as FVTOCI. At initial recognition, the Company canmakeanirrevocableelection(onaninstrument-by-instrumentbasis) todesignateinvestments in equity investments at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading.

3.2 Financialinstruments(continued)

Fairvaluemeasurement

For investments traded in organised financial markets, fair value is determined by reference to stock exchange quoted prices at the close of business on the statement of financial position date. Investments in unquoted securities are measured at fair value, considering observable market inputs and unobservable financial data of investees.

Gainsorlossesonsubsequentmeasurement

Gain or loss arising from change in fair value of investments at FVTOCI is recognised in other comprehensiveincomeandreportedwithinthefair valuereservefor investmentsat FVTOCIwithinequity. When the asset is disposed of, the cumulative gain or loss recognised in other comprehensive income is not reclassified from the equity reserve to condensed interim statement of profit or loss but is reclassified to retained earnings.

Fairvalueoffinancialinstruments

Where the fair value of financial assets and financial liabilities recorded in the condensed interim statement of financial position cannot be derived from active markets, their fair value is determined using valuation techniquesincludingthediscountedcashflowmodel.Theinputstothesemodelsaretakenfromobservable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. The judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

iii)

Financial assets at fair value through profit or loss (‘FVTPL’)

Investments in equity instruments are classified at FVTPL, unless the Company designates an investment that is not held for trading as at fair value through other comprehensive income (FVTOCI) on initial recognition.

Debt instruments that do not meet the amortised cost criteria are measured at FVTPL. In addition, debt instruments that meet the amortised cost criteria but are designated as at FVTPL are measured at FVTPL. A debt instrument may be designated as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities or recognising the gains and losses on them on different bases.

Debt instruments are reclassified from amortised cost to FVTPL when the business model is changed such that the amortised cost criteria are no longer met. Reclassification of debt instruments that are designated as at FVTPL on initial recognition is not allowed.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on remeasurement recognised in the condensed interim statement of profit or loss. Fair value is determined in the manner described in note 6.

c) Classificationandsubsequentmeasurementoffinancialliabilities

Financial liabilities comprise amounts due to related parties and most other payables.

Financial liabilities are measured subsequently at amortised cost using the effective interest method.

d) Impairment

The Company recognises loss allowances for expected credit losses (ECL) on the following financial instruments that are not measured at FVTPL:

 financial assets that are debt instruments;

 financial guarantee contracts issued;

 loan commitments issued; and

 No impairment loss is recognised on equity investments.

The Company measures loss allowances at an amount equal to lifetime ECL, except for those financial instruments on which credit risk has not increased significantly since their initial recognition, in which case 12-month ECL are measured.

12-month ECL are the portion of ECL that result from default events on a financial instrument that are possible within the 12 months after reporting date.

MeasurementofECL

ECL are probability-weighted estimate of credit losses. They are measured as follows:

 financial assets that are not credit-impaired at the reporting date: as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive);

 financial assets that are credit-impaired at the reporting date: as the difference between the gross carrying amount and the present value of estimated future cash flows;

 undrawn loan commitments: as the present value of the difference between the contractual cash flows that are due to the Company if the commitment is drawn down and the cash flows that the Company expects to receive; and

 financial guarantee contracts: the expected payments to reimburse the holder less any amounts that the Company expects to recover.

e) Offsettingfinancialinstruments

Financial assets and liabilities are offset, and the net amount reported in the condensed interim statement of financial position only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously.

f) Derecognition

The requirements for derecognition of financial assets and liabilities are carried forward from IAS 39. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. Financial liability is derecognised when it is extinguished.

3.3 Employeebenefits

Short-term employee benefits

The cost of short-term employee benefits (those payable within 12 months after the service is rendered such as paid vacation leave and bonuses) is recognised in the period in which the service is rendered.

A provision for employees' end-of-service benefits is made for the full amount due to employees for their periods of service up to the reporting date in accordance with the U.A.E. Labour Law and is reported as separate line item under non-current liabilities.

The entitlement to endof service benefits is based uponthe employees’ salary and length of service, subject to the completion of a minimum service period as specified in the U.A.E. Labour Law. The expected costs of these benefits are accrued over the period of employment.

3.4 Foreigncurrencytransactions

Transactions in foreign currencies are translated to AED at the foreign exchange rate ruling at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the condensed interim statement of financial position date are translated to AED at the foreign exchange rate ruling at that date. Foreign exchange differences arising from translation are recognised in the condensed interim statement of profit or loss.

Non-monetary items are not retranslated at period-end and are measured at historical cost (translated using the exchange rates at the transaction date), except for non-monetary items measured at fair value which are translated using the exchange rates at the date when fair value was determined.

3.5 Interestincomeandexpenses

Interest income and expense for all interest-bearing financial instruments is calculated by applying the effective interest rate to the gross carrying amount of the financial instrument, except for financial assets that have subsequently become credit-impaired (or stage 3), for which interest income is calculated by applying the effective interest rate to their amortised cost (i.e. net of the expected credit loss provision) and are recognised within ‘interest income’ in the consolidated statement of profit or loss.

3.6 Dividendincome

Dividendincome from investments is recognised in the condensed interim statementofprofit or loss when theCompany’srighttoreceivedividend hasbeen established(providedthatitisprobablethattheeconomic benefits will flow to the Company and the amount of income can be measured reliably).

3.7 Provisions,contingentliabilitiesandcontingentassets

Provisions are recognised when present obligations as a result of a past event will probably lead to an outflow of economic resources from the Company and amounts can be estimated reliably. Timing or amount of the outflow may still be uncertain. A present obligation arises from the presence of a legal or constructive commitment that has resulted from past events.

Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their present values, where the time value of money is material.

Any reimbursement that the Company can be virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision.

3.7 Provisions,contingentliabilitiesandcontingentassets(continued)

All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.

In those cases where the possible outflow of economic resources as a result of present obligations is consideredimprobableorremote,noliabilityisrecognised,unlessitwasassumedinthecourseofabusiness combination.

Possible inflows of economic benefits to the Company that do not yet meet the recognition criteria of an asset are considered contingent assets.

3.8 Equity,reservesanddividendpayments

Share capital represents the nominal value of shares that have been issued. Other details for reserves are mentioned in note 10 to the condensed interim financial statements. Accumulated losses include all current and prior period retained profits or losses.

Dividend payable to equity shareholders is included in other liabilities only when the dividend has been approved in a general assembly meeting prior to the reporting date.

3.9

Leases

The Company as a Lessee

The Company considers whether a contract is, or contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’.

To apply this definition the Company assesses whether the contract meets three key evaluations which are whether:

 The contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified at the time the asset is made available to the Company;

 The Company has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use, considering its rights within the defined scope of the contract; and the Company has the right to direct the use of the identified asset throughout the period of use. The Company assess whether it has the right to direct ‘how and for what purpose’ the asset is used throughout the period of use.

Measurement and recognition of leases as a lessee

At lease commencement date, the Company recognises a right-of-use asset and a lease liability on the condensed interim statementof financialposition. The right-of-useassetis measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred by the Company, an estimate of any costs to dismantle and remove the asset at the end of the lease, and any lease payments made in advance of the lease commencement date (net of any incentives received).

The Company depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Company also assesses the right-of-use asset for impairment when such indicators exist.

At the commencement date, the Company measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available or the Company’s incremental borrowing rate.

3.9 Leases(continued)

Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed), variable payments based on an index or rate, amounts expected to be payable under a residual value guarantee and payments arising from options reasonably certain to be exercised.

Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest.It is remeasured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments.

When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or profit or loss if the right-of-use asset is already reduced to zero.

The Company has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in condensed interim statement of profit or loss on a straight-line basis over the lease term.

3.10 Cashandcashequivalents

Cash and cash equivalents comprise cash balances, call deposits, current accounts and fixed deposits which have original maturities of less than 3 months and are free from lien.

3.11 Impairmentofnon-financialassets

The carrying amounts of the Company’s non-financial assets are reviewed at each condensed interim statement of financial position date or whenever there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The impairment losses arerecognisedinthe condensedinterimstatementofprofitor loss.Animpairment charge is reversed if the cash-generating unit's recoverable amount exceeds its carrying amount.

3.12 Segmentreporting

Under IFRS 8 “Operating Segments”, reported segments’ profits are based on internal management reporting information that is regularly reviewed by the chief operating decision maker. The measurement policies used by the Company for segmentreporting under IFRS8are thesame as thoseused in itsfinancial statements.

3.13 Insurancecontracts

Insurance contract is an agreement whereby one party called the insurer undertakes, for a consideration paid by the other party called the insured, promises to pay money, or its equivalent or to do some act valuable to the latter, upon happeningof a loss, liability or disability arising from an unknown or contingent event.

Insurance contracts are those contracts that transfer significant insurance risk. Such a risk includes the possibility of having to pay benefits on the occurrence of an insured event. The Company may also transfer insurance risk in insurance contracts through its reinsurance agreements to hedge a greater possibility of claims occurring than expected.

Once a contract has been classified as an insurance contract, it remains an insurance contract for the remainder of its lifetime, even if the insurance risk reduces significantly during this period, unless all rights and obligations are extinguished or have expired.

3.14 Taxation

Current

Provision of current tax is based on the taxable income for the period determined in accordance with the prevailing law for taxation of income. The charge for current tax is calculated using prevailing tax rates or tax rates expected to apply to the profit for the period.

Income tax expense is recognised in interim period based on the best estimate of the weighted average annualincometax rateexpected for thefullfinancial year/period.Amounts accruedfor incometaxexpense in interim period may have to be adjusted in a subsequent interim period of that financial year/period if the estimate of the annual income tax rate changes.

Deferred taxation

Deferred tax is accounted in respect of all temporary differences at the balance sheet date between the tax bases and carrying amounts of assets and liabilities for financial reporting purposes. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which the deductible temporary differences, unused tax losses and tax credits can be utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred tax is charged or credited to the condensed interim income statement, except in the case of items credited or charged to condensed interim other comprehensive income or equity in which case it is included in condensed interim other comprehensive income or equity.

3.15 Criticalaccountingestimatesandjudgementsinapplyingaccountingpolicies

In the application of the Company's accounting policies, which are described above in these condensed interim financial statements, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period.

Measurement of the expected credit loss allowance

Key concepts in IFRS 9 that have the most significant impact and require a high level of judgment, as considered by the Company while determining the impact assessment, are:

The assessment of a significant increase in credit risk is done on a relative basis. To assess whether the credit risk on a financial asset has increased significantly since origination, the Company compares the risk of default occurring over the expected life of the financial asset at the reporting date to the corresponding risk of default at origination, using key risk indicators that are used in the Company’s existing risk management processes.

The measurement of expected credit losses for each stage and the assessment of significant increases in credit risk must consider information about past events and current conditions as well as reasonable and supportableforecastsoffutureeventsandeconomicconditions.Theestimationandapplicationofforwardlooking information will require significant judgment. The definition of default used in the measurement of expected credit losses andthe assessment to determinemovement betweenstages will be consistent with the definition of default used for internal credit risk management purposes. IFRS 9 does not define default, but contains a rebuttable presumption that default has occurred when an exposure is greater than 90 days past due.

3.15 Criticalaccountingestimatesandjudgementsinapplyingaccountingpolicies (continued)

When measuring ECL, the Company must consider the maximum contractual period over which the Company is exposed to credit risk. All contractual terms should be considered when determining the expectedlife,includingprepaymentoptionsandextensionandrolloveroptions.For certain revolvingcredit facilities that do not have a fixed maturity, the expected life is estimated based on the period over which the Company is exposed to credit risk and where the credit losses would not be mitigated by management action.

Insurance and reinsurance contracts

The Company applies the PAA to simplify the measurement of insurance contracts. When measuring liabilities for remaining coverage, the PAA is broadly similar to the Company’s previous accounting treatment under IFRS 4. However, when measuring liabilities for incurred claims, the Company now discounts cash flows that are expected to occur more than one year after the date on which the claims are incurred and includes an explicit risk adjustment for non-financial risk.

Liability for remaining coverage

For insurance acquisition cash flows, the Company is eligible and chooses to capitalise all insurance acquisition cashflows upon payments. The effect of recognising insurance acquisition cash flows as an expense on initial recognition of group of insurance contracts are to increase the liability for remaining coverage on initial recognition and reduce the likelihood of any subsequent onerous contract loss. There would be an increased charge to profit or loss on initial recognition, due to expensing acquisition cash flows, offset by an increase in profit released over the coverage period. For groups of contracts that are onerous, the liability for remaining coverage is determined by the fulfillment cash flows.

Liability for incurred claims

The ultimate cost of outstanding claims is estimated by using a range of standard actuarial claims projection techniques, such as Chain Ladder and Bornheutter-Ferguson methods.

The main assumption underlying these techniques is that a Company’s past claims development experience can be used to project future claims development and hence ultimate claims costs. These methods extrapolate the development of paid and incurred losses, average costs per claim (including claims handling costs), and claim numbers based on the observed development of earlier years and expected loss ratios. Historical claims development is mainly analysed by accident years, but can also be further analysed by geographical area, as well as by significant business lines and claim types. Large claims are usually separately addressed, either by being reserved at the face value of loss adjuster estimates or separately projected in order to reflect their future development. In most cases, no explicit assumptions are made regarding future rates of claims inflation or loss ratios. Instead, the assumptions used are those implicit in the historical claims development data on which the projections are based. Additional qualitative judgement is used to assess the extent to which past trends may not apply in future, (e.g., to reflect one-off occurrences, changes in external or market factors such as public attitudes to claiming, economic conditions, levels of claims inflation, judicial decisions and legislation, as well as internal factors such as portfolio mix, policy features and claims handling procedures) in order to arrive at the estimated ultimate cost of claims that present the probability weighted expected value outcome from the range of possible outcomes, taking account of all theuncertaintiesinvolved.Other keycircumstancesaffectingthereliabilityofassumptionsincludevariation in interest rates, delays in settlement and changes in foreign currency exchange rates.

3.15 Criticalaccountingestimatesandjudgementsinapplyingaccountingpolicies (continued)

Discount rates

The Company use bottom-up approach to derive the discount rate. Under this approach, the discount rate is determined as the risk-free yield, adjusted for differences in liquidity characteristics between the financial assets used to derive the risk-free yield and the relevant liability cash flows (known as an illiquidity premium). The risk-free rate was derived using swap rates available in the market denominated in the same currency as the product being measured. When swap rates are not available, highly liquid sovereign bonds with a credit rating were used. Management uses judgment to assess liquidity characteristics of the liability cash flows.

Discount rates applied for discounting of future cash flows are listed below:

Risk adjustment for non-financial risk

The Company uses a Solvency II (Value at risk) type approach to determine its risk adjustment for nonfinancial risk. Each portfolio is matched with the most representative Solvency II LOB and an assumption is made that the prescribed standard deviation of premiums risk and reserves risk for a given Solvency II LOB is representative of the standard deviation of the portfolio LRC and LIC standard deviation respectively. Further, the Company assumes that the LRC and LIC each have a Lognormal distribution with the LIC mean matching the sum of the IBNR, OS and ULAE while the LRC mean matches the UPR of a given portfolio. The risk adjustment for non-financial risk is the compensation that the Company requires for bearing the uncertainty about the amount and timing of the cash flows of groups of insurance contracts. The risk adjustment reflects an amount that an insurer would rationally pay to remove the uncertainty that future cash flows will exceed the expected value amount. The Company has estimated the risk adjustment usinga confidence level (probability of sufficiency) approach for different lines in the range of 60-75 percentile. That is, the Company has assessed its indifference to uncertainty for product lines (as an indication of the compensation that it requires for bearing non-financial risk) as being equivalent to the 60-75 percentile confidence level less the mean of an estimated probability distribution of the future cash flows.

The Companyhasestimatedthe probability distribution of thefuture cash flows, andthe additionalamount above the expected present value of future cash flows required to meet the target percentiles.

Classification of investments

Managementdecides on acquisitionof an investmentwhether it should beclassified asoffair value through profit or loss, at fair value through other comprehensive income or at amortised cost.

Provision for legal cases

Considerable judgement by management is required in the estimation for legal cases arising from claims made under insurance contracts. Such estimates are necessarily based on significant assumptions about several factors involving varying, and possible significant, degrees of judgement and uncertainty and actual results may differ from management’s estimates resulting in future changes in estimated liabilities.

Insurance House P.J.S.C.

Condensed interim financial statements Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

Carryingamount

* The comprehensive IH Digital Transformation Program that commenced in 2019 was planned for 5 years till 2024 (from Conception to Go Live), aimed to enhance IH’s digital capabilities across motor, commercial, and medical lines of business.

Insurance House P.J.S.C.

Condensed interim financial statements

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

The project encompasses the below key elements of digital assets apart from the upgrade or replacement of the core system which is currently in progress as per the revised project roadmap. The key digital components /capabilities which are part of the program are as follows:

 User Experience Design & Customer Journey Build

 Micro-Service based Target Technical Architecture & Infrastructure

 Digital Transformation Requirements, Process and RFP

 Comprehensive Test Pack including Methodology, Test Plan

 Online Solution for Business to Business, Business to Consumer, Insurance as a Service Components, and other Digital Fabric Layer

Transformation of Core Insurance (Replacement or Upgrade) which is currently in progress. The above components/capabilities acquired and/or completed as part of this Project (Items 1- 5 above) are all re-usable in nature and currently form the base of the Transformation of Core Insurance, which is delayed, but still in progress. This project has been delayed due to Covid – 19, change in management team / key personnel and financial distractions of 2023. It is now being rescheduled to be completed by 2025. The Company has capital work in progress of AED 6,428,930 as at 31 March 2024 (31 December 2023- AED 6,898,054) and management expects to capitalize it upon completion of the project. Based on internal assessment, management has initiated to amortize it effective 1 November 2023 over the period of 3 years. Management has considered the impact of amortization amounting to AED 608,652 (forming part of General and Administrative expenses) during the period.

Insurance House P.J.S.C.

Condensed interim financial statements Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

The breakdown of groups of insurance and reinsurance contracts issued, and reinsurance contracts held, that are in asset position and those in a liability position is set out in the table below: (Un-audited) At31March

(Audited) At 31 December

The roll-forward of net asset or liability for insurance contracts issued showing the liability for remaining coverage and the liability for incurred claims, is disclosed in the table on the next page:

Insurance House P.J.S.C.

Condensed interim financial statements

to the condensed interim financial statements for the period ended 31 March 2024 (continued)

5 Insurance and reinsurance contracts (continued) Roll-forwardofnetassetorliabilityforinsurancecontractsissuedshowingtheliabilityforremainingcoverageandtheliabilityforincurredclaims(continued)

2024(Un-audited)

Liabilitiesforremainingcoverage Liabilitiesforincurredclaims Excludingloss component Losscomponent Estimatesofthe presentvalueof futurecashflows

adjustment

to the condensed interim financial statements for the period ended 31 March 2024 (continued)

Insurance House P.J.S.C.

Condensed interim financial statements

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

2024(Un-audited) Liabilitiesforremainingcoverage Liabilitiesforincurredclaims Excludingloss component Losscomponent Estimatesofthe presentvalueoffuture cashflows

Insurance House P.J.S.C.

Condensed interim financial statements

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

5 Insuranceandreinsurancecontracts(continued) Roll-forwardofnetassetorliabilityforreinsurancecontractsissuedshowingtheliabilityforremainingcoverageandtheliabilityforincurredclaims 2023(Audited)

interim financial statements

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

6 Financialassets

(Un-audited) (Audited) 31 March 2024 31 December 2023

The movement in the investments in financial assets is as follows: (Un-audited) (Audited) 31 March 2024 31 December 2023

The geographical distribution of investments is as follows:

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

6 Financialassets(continued)

Management considers that the fair values of financial assets and financial liabilities that are not measured at fair value approximates to their carrying amounts as stated in the condensed interim financial statements and are classified as level 3 in accordance with the IFRS 13 hierarchy.

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value into Levels 1 to 3 based on the degree to which the fair value is observable.

 Level 1 – fair value measurements derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

 Level 2 – fair value measurements derived from inputs other than quoted prices included within Level 1thatareobservablefortheassetorliability,eitherdirectly(i.e.asprices)orindirectly(i.e.derivedfrom prices); and

 Level 3 – fair value measurements derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Management has determined the fair value of these unquoted investments by applying an appropriate risk adjusted liquidity discount on the net assets of the investee companies.

31 March 2024 (Un-audited)

31 December 2023 (Audited)

(a) Fair values have been determined by reference to the quoted prices at the reporting date.

During the period/year, there were no transfers between Level 1 and Level 2 fair value measurement and no transfers into or out of Level 3 fair value measurements.

Condensed interim financial statements

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

7 Statutorydeposits

In accordance with the requirement of Article (38) of the Federal Decree Law No. (48) of 2023 Regulating Insurance Activities (previously Federal Law No. 6 of 2007, as amended), the Company maintains a bank deposit amounting to AED 6,000,000 as of 31 March 2024 (31 December 2023: AED 6,000,000) and it cannot be utilized without the consent of the Central Bank of the U.A.E. (“CBUAE”).

8 Otherreceivablesandprepayments

(Un-audited) (Audited) 31 March 2024 31 December 2023

land and building (Note 16)

9 Cashandcashequivalents

(Un-audited) (Audited) 31 March 2024 31 December 2023 AED AED

Cash at banks includes current accounts and call account balances amounting to AED 29,485,349 as of 31 March 2024 held with a financial institution which are related parties (call account balances are interest bearing) (31 December 2023: AED 24,311,258).

10 Capitalandreserves

Sharecapital (Un-audited) (Audited) 31 March 2024 31 December 2023 AED AED

Authorised, issued and fully paid:

Insurance House P.J.S.C.

Condensed interim financial statements

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

10 Capitalandreserves(continued)

Tier1capital

On 14 January 2019, the Company’s Board of Directors approved the issuance of Tier 1 perpetual bonds non-convertible intoshares amountingtoAED15,000,000 for the purpose of strengthening theCompany’s capital adequacy and assets and to support its financial position to achieve the Company’s growth strategy and to be compatible with the instructions of the CBUAE.

Statutoryreserve

In accordance with the UAE Federal Law No. 32 of 2021, concerning Commercial Companies and the Company’s Articles of Association, 10% of net profit were to be transferred to a non-distributable legal reserve until thebalance of the legal reserve equals 50%oftheCompany’s paidupshare capital. This reserve is not available for any distribution to the shareholders.

Reinsurancereserve

In accordance with Article (34) to Insurance Authority’s Board of Directors Decision No (23) of 2019, insurance companies incorporated in the State and licensed by the Central Bank of the United Arab Emirates (“CBUAE”) shall bind in the preparation of its annual financial statements and its final accounts to allocate an amount equal to 0.5% (Five per thousand) of the total reinsurance premiums ceded by them in all classes in order to create a provision for the probability of failure of any of the reinsurers with whom the Company deals to pay what is due to the Company or default in its financial position. The provision shall be accounted year after year based on the reinsurance premiums ceded and may not be disposed of without the written approval of the Assistant Governor of the Banking and Insurance Supervision Department of CBUAE. The decision was effective from 1 December 2020. Accordingly, an amount of AED 1,181,192 (31 December 2023: AED 1,181,192) has been recorded in equity as a reinsurance default risk reserve.

Treasuryshares

During the year ended 31 December 2022, the Company bought back a total number of 5.3 million outstanding shares with AED 4,660,318.

11 Provisionforemployees’end-of-servicebenefits

(Un-audited) (Audited) 31 March 2024 31 December 2023 AED AED

Balance as at 1 January 2,531,023 3,208,318

Charges during the period/year 140,037 560,255

Benefits paid during the period/year (68,267) (1,237,550)

Balance at the end of the period/year 2,602,793 2,531,023

Condensed interim financial statements

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

12 Other payables (Un-audited) (Audited) 31March 2024 31December 2023

InsideUAE:

(Un-audited) (Audited) 31March 2024 31December 2023

*Accrued expense related to amounts incurred in the normal course of business such as fee payable to regulators and other professionals.

13 Incomefrominvestments

(Un-audited) (Restated) (Un-Audited) Three months period ended 31 March 2024 Three

14 Earningspershare–Basicanddiluted

Earnings per share are calculated by dividing the profit for the period by the weighted average number of ordinary shares outstanding during the period as follows:

(Un-audited) (Restated) (Un-audited) Three months period ended 31 March 2024 Three months period ended 31 March 2023

Earnings (AED): Loss for the period (6,908,140) (8,738,703)

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

14 Earningspershare–Basicanddiluted(continued)

Number of shares: Weighted average number of ordinary shares for the purpose

Loss per share (AED):

The Company does not have potentially diluted shares and accordingly, diluted earnings per share equals basic earnings per share.

15 Riskmanagement

The Company monitors and manages the financial risks relating to its business and operations. These risks include insurance risk, capital risk, credit risk, interest rate risk, market risk, foreign currency risk and liquidity risk.

The Company seeks to minimize the effects of these risks by diversifying the sources of its capital. It maintains timely reports about its risk management function and monitors risks and policies implemented to mitigate risk exposures.

Insurancerisk

Theriskunderanyoneinsurancecontractis thepossibilitythat theinsuredeventoccursandtheuncertainty of the amount of the resulting claim. By the nature of an insurance contract, this risk is random and therefore unpredictable.

Fora portfolio of insurance contracts where the theory of probability is appliedto pricingand provisioning, the principal risk that the Company faces under its insurance contracts is that the actual claims and benefit payments exceed the estimated amount of the insurance liabilities. This could occur because the frequency or severity of claims and benefits are greater that estimated. Insurance events are random and the actual number and amount of claims and benefits will vary from period to period from the estimate established using statistical techniques.

Experience shows that the larger the portfolio of similar insurance contracts, the smaller the relative variability about the expected outcome will be. In addition, a more diversified portfolio is less likely to be affected across the board by a change in any subset of the portfolio. The company has developed its insurance underwriting strategy to diversify the type of insurance risks accepted and within each of these categories to achieve a sufficiently large population of risks to reduce the variability of the expected outcome.

The Company manages risks through its underwriting strategy, adequate reinsurance arrangements and proactive claims handling. The underwritingstrategyattempts toensurethat theunderwritten risks are well diversified in terms of type and amount of risk, industry and geography. Underwriting limits are in place to enforce appropriate risk selection criteria.

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

15 Riskmanagement(continued)

Capitalrisk

The Company’s objectives when managing capital are:

 To comply with the insurance capital requirements required by Federal Decree Law No. (48) of 2023 Regulating Insurance Activities (previously Federal Law No. 6 of 2007 as amended), as amended, concerning the formation of Insurance Authority of UAE.

 To safeguard the Company’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders.

 To provide an adequate return to shareholders by pricing insurance contracts commensurate with the level of risk.

In UAE, the local insurance regulator specifies the minimum amount and type of capital that must be held by the Company inrelation to its insurance liabilities. The minimum required capital (presented in the table below) must be maintained at all times throughout the period. The Company is subject to local insurance solvency regulations with which it has complied with during the period.

The table below summarizes the minimum regulatory capital of the Company and the total capital held.

(Un-audited) (Audited) 31 March 2024 31 December 2023 AED AED

Creditrisk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.

Key areas where the Company is exposed to credit risk are:

 Amounts due from reinsurers in respect of claims already paid.

 Amounts due from insurance contract holders.

 Amounts due from insurance intermediaries.

 Amounts due from banks for its balances and fixed deposits.

The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company’s exposure and the credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counter party limits that are reviewed and approved by the management annually.

Re-insurance is used to manage insurance risk. This does not, however, discharge the Company’s liability as primary insurer. If a re-insurer fails to pay a claim for any reason, the Company remains liable for the payment to the policy holder. The creditworthiness of re-insurers is considered on an annual basis by reviewing their financial strength prior to finalization of any contract.

Condensed interim financial statements

Notes to the condensed interim financial statements for the period ended 31

March 2024 (continued)

15 Riskmanagement(continued)

Creditrisk(continued)

The Company maintains record of the payment history for significant contract holders with whom it conductsregularbusiness. Theexposuretoindividualcounterpartiesis alsomanagedbyothermechanisms, such as the right of offset where counterparties are both debtors and creditors of the Company. Management information reported to the Company includes details of provisions for impairment on insurancereceivablesandsubsequentwriteoffs.Exposurestoindividualpolicyholdersandgroupsofpolicy holders arecollected withinthe ongoingmonitoring ofthe controls.Where there existssignificant exposure to individual policy holders, or homogenous groups of policy holders, a financial analysis equivalent to that conducted for re-insurers is carried out by the Company.

The carrying amount of financial assets recorded in the condensed interim financial statements, which is net of expectedcredit loss, represents the Company’s maximum exposure to credit risk for such receivables and liquid funds.

Interestraterisk

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in the market interest rate. The Company is exposed to interest rate risk on call account, financial assets such as bonds. The interest rates are subject to periodic revision.

Marketrisk

Market prices risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to the individual instrument or its issue or factors affecting all instruments traded in the market.

Foreigncurrencyrisk

The Company undertakes certain transactions denominated in foreign currencies, which imposes a sort of risk due to fluctuations in exchange rates during the period. The UAE Dirham is effectively pegged to the US Dollar, thus foreign currency risk occurs only in respect of other currencies. The Company maintains policies and procedures to manage the exchange rate risk exposure.

Liquidityrisk

The Company’s Board of Directors adopted an appropriate liquidity risk management framework as the responsibility of liquidity risk management rests with the Board of Directors.

The following table shows the maturity dates of Company’s financial assets and liabilities as at 31 March 2024.

Condensed interim financial statements

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

15 Riskmanagement(continued)

Liquidityrisk(continued)

More

The following table shows the maturity dates of Company’s financial assets and liabilities as at 31 December 2023 (audited).

More

Insurance House P.J.S.C.

Condensed interim financial statements

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

16 Relatedpartybalancesandtransactions

Related parties comprise the major Shareholders, the Board of Directors and key management personnel of the Company and those entities in which they have the ability to control or exercise significant influence in financial and operation decisions. The transactions with these related parties are primarily financing in nature as follows: Finance House P.J.S.C is one of the major shareholders of the Company as of 31 March 2024. FH

Finance House Securities L.L.C and Finance House L.L.C. are subsidiaries of Finance House P.J.S.C.

Insurance House P.J.S.C.

Condensed interim financial statements

Notes to the condensed interim financial statements for the period ended 31

March 2024 (continued)

16 Relatedpartybalancesandtransactions(continued)

The Company, in the normal course of business, collects premiums from and settles claims of other businesses that fall within the definition of related parties as contained in IFRS.

The following are the details of significant transactions with related parties: (Un-audited) (Restated) (Un-audited)

17 Segmentinformation

TheCompanyhastworeportablesegments,asdescribedbelow,whicharetheCompany’s strategicbusiness units. The business units are managed separately because they require different approach technology and marketing strategies. For each of the strategic business units, the Chief Operating Decision Maker reviews internal management reports on at least a quarterly basis.

The following summary describes the two main business segments:

 Underwriting of general insurance business – incorporating all classes of general insurance such as fire, marine, motor, medical, general accident and miscellaneous.

 Investments – incorporating investments in marketable equity securities and investment funds, development bonds, term deposits with banks and other securities.

House P.J.S.C. Condensed interim financial statements

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

17 Segmentinformation(continued)

Primary segment information - business segment

Threemonthsperiodended

a) The following is an analysis of the Company’s assets, liabilities and equity by business segment:

b) Secondary segment information – revenue from underwriting departments

The following is an analysis of the Company’s revenues classified by major underwriting department.

(Un-audited) (Restated) (Un-audited) Threemonths periodended31 March2024 Threemonths periodended31 March2023

There were no transactions between the business segments during the period.

Condensed interim financial statements

Notes to the condensed interim financial statements for the period ended 31 March 2024 (continued)

18 Commitmentsandcontingencies

The Company’s bankers have issued in the normal course of business letters of guarantee in favor of third parties amounting to AED 6.7 million (31 December 2023: AED 6.7 million).

19 Restatement

During the period ended 31 March 2023, the Company presented condensed interim financial statements as per IFRS 4 “Insurance Contracts”. However, pursuant to application of IFRS 17 effective 1 January 2023, the Company has considered restatement in accordance with IFRS 17 for the purpose of presenting comparativefiguresfrom1January2023till31March2023.Thebalancesinthecondensedinterimfinancial statements for period ended 31 March 2023 (previously published) as per IFRS 4 is as under:

Condensed interim statement of profit or loss Three months period ended 31 March 2023

and diluted loss per share (0.13) Condensed interim statement of financial position 31 March 2023

assets 407,480,439

60,780,099

346,700,340

Condensed interim financial statements

Notes to the condensed interim financial statements for the period ended 31

March 2024 (continued)

20 PremiumDeficiencyReserveadjustments

There is an adjustment in Premium Deficiency Reserve (PDR) due to certain changes in the methodology adopted by the Management based on actuarial recommendation. Accordingly, the Management had accounted the impact amounting to AED 9,615,607 (AED 6,968,874 in quarter ended 31 March 2023 and AED 2,646,733 in quarter ended 30June2023) prospectively under IFRS4.However,on adoptionofIFRS 17 during the previous quarter ended 31 March 2023, these costs had been retrospectively applied in the last quarter of 2022 and reversed the provision recorded in the books, which is maintained under IFRS 4, in the previous year.

21 Corporatetax

On 9 December 2022, UAE Ministry of Finance released Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (Corporate Tax Law or the Law) to enact a Federal corporate tax (CT) regime in the UAE. The CT regime is effective from 1 June 2023 and accordingly, it has an income tax related impact on the condensed interim financial statements for accounting periods beginning on or after 1 January 2024.

The Cabinet of Ministers Decision No. 116 of 2022 specifies the threshold of income over which the 9% tax rate would apply. A rate of 9% will apply to taxable income exceeding AED 375,000 and a rate of 0% will apply to taxable income not exceeding AED 375,000 and a rate of 0% on qualifying income of free zone entities.

The Company is subjectto taxation commencing 01 January 2024. Management believes that the Company does not have any tax liability in absence of taxable profit and has not recognized deferred tax assets on unused tax losses in absence of virtual certainty that future taxable profit will be available against which the unused tax losses can be utilized.

22 Subsequentevents

No adjusting or significant non-adjusting events occurred between the reporting date and the date of approval of the condensed interim financial statements.

23 General

The figures in the condensed interim financial statements are rounded to the nearest Dirham of United Arab Emirates.

24 Approvalofcondensedinterimfinancialstatements

The condensed interim financial statements were approved and authorized for issue by the Board of Directors on 14 May 2024.